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CPA audit multiple choice questions and answers
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CPA audit multiple choice questions
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CPA audit multiple choice questionsWhich of the following best describes why an independent auditor is asked to express an opinion on the
fair presentation of financial statements?:
1) it is difficult to prepare financial statements that fairly present a company's financial position,
operations, and cash flows without the expertise of an independent auditor
2) it is management's responsibility to seek available independent aid in the appraisal of the financial
information shown in its financial statements
3) the opinion of an independent party is needed because a company may not be objective with respect
to its own financial statements
4) it is a customary courtesy that all sotckholders of a company receive an independent report on
management's stewardship of the affairs of the business - answer3,
Which of the following professional services is an attestation engagement?:
1) a consulting service engagement to provide computer-processing advice to a client
2) an engagement to report on compliance with statutory requirements
3) an income tax engagement to prepare federal and state tax returns
, 4) the preparation of financial statements from a client's financial records - answer- attestation
engagements mandate a formal written report, such as an audit report that is either unqulalified
opinion, qualified opinion, disclaimer, or adverse opinion
Which of the following attributes is likely to be unique to the audit work of CPAs as compared to the
work performed by practitioners of other professions?
1) independence
2) competence
3) due professional care
4) complex body of knowledge - answer1) independence
Operational audits generally have been conducted by internal auditors and governmental audit agencies
but may be performed by certified public accountants. A primary purpose of an operational audit is to
provide:
1) a means of assurance that internal accounting controls are functioning as planned
2) a measure of management performance in meeting organizational goals
3) the results of internal examinations of financial and accounting matters to a company's top-level
management
4) aid to the independent auditor, who is conducting the audit of the financial statements - answer1
which of the following best describes the operational audit?
1) it requires the constant review by internal auditors of the administrative controls as they relate to the
operations of the company
2) it concentrates on implementing financial and accounting control in a newly organized company
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